Blue Cross and Blue Shield of Illinois

 

August 23, 2013

Legislative Update
Deadline to Send Health Insurance Marketplace Notice to Employees Is Oct. 1

The Oct. 1 deadline for employers to distribute the notice about the Health Insurance Marketplace of Illinois to employees is approaching. Below are some frequently asked questions and answers about the notice.

What is the Marketplace notification?
Employers who are subject to the Fair Labor Standards Act (FLSA) have to send a notice to employees about new coverage options through the Marketplace.

To which employers does this apply?
According to the Department of Labor, the FLSA applies to employers that employ one or more employees who are engaged in, or produce goods for, interstate commerce. For most employers, a test of not less than $500,000 in annual dollar volume of business applies.

The FLSA also specifically covers the following entities: hospitals; institutions primarily engaged in the care of the sick, the aged, mentally ill or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; preschools, elementary and secondary schools, and institutions of higher education; and federal, state and local government agencies.

What is the deadline for distributing the notice?
Employers are required to provide the notice to each new employee at the time of hiring beginning Oct. 1, 2013. For 2014, an employer has to provide the notice within 14 days of an employee's start date. With respect to employees who are current employees before Oct. 1, 2013, employers are required to provide the notice by Oct. 1, 2013.

By what method does the employer have to distribute the notice?
The notice is required to be provided automatically, free of charge. It can be provided in writing either by first-class mail, or electronically if the department’s electronic disclosure safe harbor requirements are met.

Is there a model notice that employers can use?
Yes. The federal government has released model notices for employers that provide a health plan and for those that don’t. Employers can use these notices until the federal government releases final notices. Additional details are on the Department of Labor website.

Will Blue Cross and Blue Shield of Illinois be preparing and/or distributing the notice for groups?
We currently do not plan to prepare or distribute these notices on behalf of employers.

We are still evaluating the most cohesive method to assist employers with completing certain fields in the model notice. When we reach a final business decision and approach, we will provide additional communication and guidance. 

 
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A Division of Health Care Service Corporation, a Mutual Legal Reserve Company,
an Independent Licensee of the Blue Cross and Blue Shield Association.